ARM Stock Reaches New High, Analysts See Further Upside Potential

TLDR

• ARM shares reached a record high of $239.51 before advancing to $242.03, lifting year-to-date gains above 104%.
• Rosenblatt lifted its target to $270 and Jefferies to $290, both keeping Buy ratings after solid Q4 results.
• Licensing revenue rose 29% year-over-year and royalties increased 11%, with quarterly revenue of $1.49 billion.
• Sanford C. Bernstein initiated coverage at Outperform and a $300 target, citing a “renaissance of CPUs.”
• Several law firms have opened early-stage securities-fraud probes tied to U.S. antitrust scrutiny of ARM’s licensing model.

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(SeaPRwire) –   Arm Holdings reached a record $239.51 on Tuesday before extending to $242.03, bringing its year-to-date advance above 104%. The stock has now more than doubled in 2026.

Arm Holdings plc American Depositary Shares, ARM

The move follows a robust earnings report in early May. Licensing revenue rose 29% year-over-year and royalties gained 11%. Quarterly revenue totaled $1.49 billion.

The results prompted a series of analyst target increases. Rosenblatt raised its target from $175 to $270. TD Cowen lifted its target from $165 to $265. Jefferies moved from $210 to $290, pointing to projected growth in demand for AGI CPUs in the years ahead.

A notably higher call came from Sanford C. Bernstein, which initiated coverage at Outperform with a $300 target. The firm said ARM is positioned to benefit from what it describes as a “renaissance of CPUs,” with the server CPU market poised for sharp expansion over the coming years.

Analyst Sentiment

Among 27 analysts covering the stock, 20 rate it Buy, six Hold, and one Sell. The consensus price target is $203.79, though recent bullish calls sit well above that level.

Citigroup also sees strong server CPU growth, estimating that agentic CPUs could reach $59.4 billion in value by 2030.

ARM’s market capitalization now ranges between about $235 billion and $247 billion, with the stock trading at a P/E ratio near 253 to 265. InvestingPro flags the stock as overvalued versus its Fair Value estimate.

Partners Group Holding AG established a new position in ARM in Q4, acquiring 7,300 units worth roughly $798,000. Institutional investors now hold 7.53% of the stock.

Headwinds to Watch

Risks remain. Several law firms have launched early-stage securities-fraud investigations following reports of U.S. antitrust scrutiny into ARM’s licensing model. No formal charges have been filed, and the probes are described as preliminary.

ARM CEO Rene Haas sold 9,299 units on April 14 at an average price of $160.85 under a pre-arranged Rule 10b5-1 plan. Insider William Abbey also sold 7,000 units on May 15 at $212.55 to cover tax withholding on vested equity awards.

A separate report indicated that AMD and ARM both gained server CPU unit share, while Intel’s share fell from 59% to 55%, according to a market share report referenced by Evercore when reiterating Outperform ratings on all three names.

ARM and SoftBank Group made a preliminary approach to acquire Cerebras Systems ahead of its planned IPO. The offer was declined.

The stock’s 52-week range spans $100.02 to $239.50, and its 50-day moving average is $168.98.